During the 55th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax on rice kernels has been reduced from 18% to 5%, while life-saving gene therapy will now be exempt from tax. Additionally, parts used in manufacturing surface-to-air missiles will continue to be exempt from GST. However, the tax rate on caramelised popcorn has been increased to 18%, citing its harmful effects on health. The Finance Minister also clarified that payment aggregators will be eligible for exemptions, but this does not apply to payment gateways and fintech services.
The Oil Ministry has proposed the elimination of windfall profit tax on crude oil to the Finance Ministry, while also requesting the inclusion of natural gas and petroleum products under the Goods and Services Tax framework. The upcoming GST Council meeting may discuss this proposal, but many states are cautious about including petroleum products under GST due to revenue concerns. Finance Minister Nirmala Sitharaman has emphasized that the GST law already has provisions for this inclusion, and it is now up to the GST Council to reach a consensus on the matter.
The 53rd GST Council Meeting, held in New Delhi, has generated significant anticipation for potential revisions to the current tax system. Stakeholders are hoping for a simplification of the current multiple tax rates and the inclusion of petrol and diesel under GST. Finance Minister Nirmala Sitharaman, speaking on behalf of the CGST, reassures taxpayers of the government's efforts to make GST compliance easier. Additionally, she announces the appointment of Bihar Deputy Chief Minister Samrat Choudhary as the Chairman of the GoM for Rate Rationalisation.